Top Headlines
Deutsche Bank Fined by Fed Over Lack of Controls – Profit & Loss
The Federal Reserve has announced two enforcement actions against Deutsche Bank that requires the bank to pay a combined $156.6 million in civil money penalties.
- Deutsche Bank Is First Bank Busted for Breaking Volcker Rule – Bloomberg
- Fed Fines Deutsche Bank $156.6 Million for Forex Violations – Reuters
Euro Steady Below Three-Week High, Focus on French Election – Reuters
The euro inched higher in early European trade but remained almost a cent off this week’s highs as investors battened down the hatches for results of the first round of a tightly-fought French presidential election.
Coffee and Thin Liquidity on Traders’ Menus for French Vote – Bloomberg
It may not be cafe au lait, but traders are likely to need plenty of coffee to sustain them through the first round of the French election.
Dollar Pares Losses on Renewed Hopes for White House Policies – Wall Street Journal (subscription)
The dollar pared losses on renewed hopes that the White House may be able to push through fiscal policies.
Sterling Flat Ahead of UK Retail Sales Data – Reuters
Sterling was flat against the dollar ahead of UK data expected to show a continued slowing in consumer spending in the lead-up to Britain’s European Union exit talks.
Sterling No Longer the Most Hated Currency, But Still Not Loved – Financial Times (subscription)
Investors are asking whether snap election surge marks the start of a sustained recovery.
Japan Aso Says Won’t Fret of Trump’s Comment Dollar ‘Too Strong’ – Reuters
Japanese Finance Minister Taro Aso said he didn’t see a problem with US President Donald Trump’s recent comments about the dollar “getting too strong,” as his Treasury secretary later clarified that the president was not seeking to talk the currency down.
Mexico Peso Gains on Hints of More Rate Hikes, Brazil Stocks Up – Reuters
Mexico’s peso gained after the country’s central bank chief hinted at further interest rate hikes and the country’s finance minister said he saw room for further gains in the currency.
Peruvian Central Bank Eliminates Another Reserve Requirement – Reuters
Peru’s central bank eliminated an additional reserve requirement for foreign exchange derivative operations that had been applied for two years when transactions exceeded a daily allowance.
Rattled Investors Seek Shelter Amid Global Political Tensions – Wall Street Journal (subscription)
Investors are bidding up prices for gold, Japanese yen and other haven assets, seeking cover from political and economic risks that are spreading across the globe.
If You Like the Euro, Why Not Just Call for a Global Gold Standard? – Financial Times (subscription)
Members of the single currency are forced to issue obligations in a currency none of them can print.
Regulatory News
Trump to Sign ‘Financial-Related’ Executive Actions on Friday: Sources – CNBC
President Donald Trump is expected to sign multiple “financial related” executive actions at the Treasury on Friday, sources told CNBC.
Mnuchin: FSOC Working on Revised Volcker Rule – Risk (subscription)
US Treasury secretary wants revamp of prop trading ban; not repeal.
European Commission’s Dombrovskis and BOE’s Carney say international agreements reached since the financial crisis shouldn’t be undermined.
Trump’s Pick to Regulate Banks Is Hardly a Shake-up – Bloomberg
Utah investor Randal Quarles is a veteran of both Bush administrations and no Fed stalker.
Company News
Nex SEF Gets CFTC Approval – Profit & Loss
Nex Group has received regulatory approval from the Commodity Futures Trading Commission (CFTC) for a new Swap Execution Facility, Nex SEF (Nex SEF).
Jefferies Plans to Take CEEMEA Expansion Into Primary Market – Global Capital (subscription)
Jefferies is building out its CEEMEA trading operations and eventually plans to add primary markets, derivatives and local currency trading to a revitalised business.
London Currency Exchange Firm Delays Dublin Move – Irish Times
LMAX Exchange ‘pauses’ bid for Irish regulatory approval over Brexit uncertainty.
TriOptima Launches Compression for Client Cleared Trades – Profit & Loss
TriOptima has included client cleared trades in a triReduce Mexican peso compression cycle in CME Clearing for the first time.
Market Savvy
Asian FX Edge Up, Markets Wary Before French Vote; Baht Down – Reuters
Asian currencies were modestly higher with trading characterised by caution ahead of the first round of the French Presidential election this weekend.
Russian Debt Gains on Rate Cut Signals, Other Markets Weaken – Reuters
Russian 10-year bond yields fell to three-year lows on expectations of a rate cut, although the rouble along with most other emerging assets was flat to weaker as the dollar and US yields held off recent lows.
CEE Currencies Trade Near Multi-Week Lows on French Vote Worry – Reuters
Central European currencies hovered near multi-week lows due to fears that an anti-EU candidate may win the first round of France’s presidential election on Sunday.